Compensatory Damages (OCR A-Level Law): Quizzes

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Compensatory damages
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What is the main aim of compensatory damages for breach of contract?

Put claimant in position if contract performed

Which two categories of compensatory damages exist?

Liquidated and unliquidated damages

When do liquidated damages operate?

Parties pre-agree sum in contract clause

What makes a pre-agreed damages clause unenforceable as a penalty?

It far exceeds genuine pre-estimate of loss

What three tests apply to unliquidated damages claims (CRM)?

Causation, Remoteness, Mitigation

What must be established first when claiming unliquidated damages?

Causation: a factual link to the breach

What are the two limbs of the rule in Hadley v Baxendale?

Natural losses & contemplated losses

Why wasn't the carrier liable in Hadley v Baxendale?

Special circumstances not communicated

What must an injured party do regarding their loss after breach?

Take reasonable steps to mitigate the loss

Who bears the burden of proving failure to mitigate loss?

The defendant must prove failure

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